Invest with Insight: The 4P Framework to Evaluate Stocks and Funds

0:01 Hey there, and welcome to Faith in Finance, where your values and your financial vision come together. I'm your host, Geil Thompson, Registered Rep for Joseph Eden Capital, a sister firm of Joseph Wealth Management. Every week, I'll be walking with you through the tools, truths, and strategies that help you build wealth with purpose, clarity, and peace. Because your money isn't just about what you have. It's about what you're building. Let's get started. Last week. We learned how to read what we see in the market, tickers, indexes, and trends. Today, we take it one step deeper, how to evaluate what's worth investing in. Because here's the truth. There's no shortage of stocks, funds, or hot financial tips. But what separates the wise from the overwhelmed is this, having a framework, a way to decide what aligns with your values, your goals, and your wisdom. We live in a world full of noise, headlines, social

1:31 media clips, and celebrity investors. But hype doesn't build wealth. Strategy does. When we work with clients, we teach something called the 4P framework, a simple, powerful lens to evaluate any stock, fund, or investment opportunity. The 4Ps are these. Number one, purpose. What is the company's mission? What problems does it solve? Does it align with your values? Two, performance. How has this company or fund performed over the past one, five, or ten years? Has it grown consistently or is it down? Three, people.

2:18 Who's in charge? What's the leadership track record? Is it ethical, forward -thinking, and stable? Price. Is the price of the stock or fund fair based on what its earnings are doing? We're going to look at metrics like P .E. ratio, 52 week range and market cap. OK, let's say you're taking the challenge and you decide to start with Apple, one of the most well -known companies on the planet. Their ticker symbol is AAPL. So what are you really looking at? Let's walk it through the 4P framework. Purpose. Apple is all about innovation, simplicity, and creating tech that millions of people use every day. iPhones, Macs, AirPods. Chances you're probably holding one of their products right now as you're watching me. Two, performance. Over the past 10 years, Apple has delivered strong, consistent returns.

3:24 It's grown through product launches, smart acquisitions, brand loyalty, and it's almost unmatched. Three, the people. The company is led by Tim Cook and a leadership team that has proven forward thinking and trusted by shareholders around the world. Four, its price. Sure, the stock moves up and down like any other stock, but behind that price is a business with real cash flow, global impact, and long -term investor confidence. Now, let's compare that to something broader, like an index fund. Let's take the Vanguard Total Stock Market ETF. Its ticker symbol is VTI. The purpose? This fund is built for diversification. It gives you ownership in thousands of U .S. companies, big, small, and everything in between. Two, its performance.

4:24 It's tracked the overall U .S. economy, so when the country grows, your investment grows with it. Third, the people. It's managed by Vanguard, one of the most respected names in finance known for low cost and long -term discipline. And fourth, price. You're not betting on one company. You're spreading risk and gaining access to the entire market at a relatively low cost. Whether you invest in a company like Apple or in the whole market through something like that Vanguard VTI index, what matters most is that you understand what you own and why you own it. Now, here's something we don't talk about enough. Just because something is popular, it does not mean that it is profitable. or purposeful. As believers and builders, we don't just invest for returns. We invest with discernment. So when you're evaluating where to place your money, here are a few things to look for. There are some red flags, we'll call those the cons, and there are some green flags, we'll call those the pros. A red flag signs to pause and ask deeper questions, like number one. Sudden leadership exits. When CEOs and founders leave without clear succession, it often signals internal troubles. Number two,

5:57 negative earnings quarter after quarter. If a company can't turn a profit over time, it's likely struggling. Last red flag, number three, a broken business model. If what they offer no longer solves a real -world problem, the market will move on, and so should you. Now, let's move on to the pros, the green lights, signs that an investment might be healthy and worth exploring. Number one, steady revenue growth, not hype, but consistent results. Number two, a strong dividend history. Proof that a company rewards its investors. And lastly, three, mission -driven innovation. Companies that aren't just making money, but making impact. The bottom line, your money should go to places that make sense financially and spiritually. Because real wealth isn't just about multiplying money. It's about assigning it with a specific purpose. Proverbs 4 and 7 says this. Wisdom is the principal thing. Therefore, get wisdom. And in all you're getting, get understanding.

7:18 God isn't anti -investment. He's anti -ignorance because he told us that people perish for what? Lack of knowledge. When you invest with wisdom. You're not just building wealth. You're modeling stewardship. So don't rush. Don't follow the crowd. Use the 4P framework to invest with clarity. Now, I have a challenge for you. Pick one company or fund this week. I want you to run it through that 4P framework we've just worked through. Purpose, performance, people, and price. Got it? Write down your notes. Would you invest?

8:04 If so, why or why not? If you want help reviewing your portfolio or creating an investment plan rooted in kingdom values, schedule your consultation at josephwealthmanagement .com or call us 800 -807 -2881. Remember, this is your time to invest, not just with your money, but with your mind. Let's build with insight and wisdom together. Welcome to our faith perspective. Before we close, I want to offer a biblical lens for how we evaluate our investments. Proverbs 4 and 7 tells us this.

8:48 Wisdom is the principal thing. Therefore, get wisdom and in all you're getting, get understanding. Investing isn't just about what's trending. It's about using discernment, the kind of wisdom that looks beyond the surface. Every day, we're faced with choices, what to invest in, who to trust, how to measure risk. The world says, follow the hype. But the kingdom calls for us to examine purpose, performance, people, and price. That's why that 4P framework matters. It's not just a financial tool. It's a spiritual posture. It reminds us to lead with purpose, to study performance, to consider the fruits of people's leadership, and to measure value rightly. Because investing is about more than numbers. It's about alignment.

9:47 It's about stewardship. It's about placing what God has entrusted to you into places that reflect his wisdom. So as you step into the market, don't chase profits, seek insight. Because when you invest with understanding, you plant seeds that can produce both financial and eternal returns. And that's good. I look forward to seeing you guys on our next episode. See you soon. The Faith and Finance podcast is intended for educational, informational, and entertainment purposes only.

10:52 The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect those of Joseph Wealth Management, Joseph Eden Capital, or any affiliated entities. Nothing shared on this podcast should be construed as personalized, financial, legal, tax, or investment advice. All investing carries risk, including the potential loss of principal. Listeners are strongly encouraged to consult with a licensed financial advisor or fiduciary who understands their unique circumstances before making any financial decisions. Joseph Wealth Management and Joseph Eden Capital are registered entities and operate in accordance with applicable regulatory guidelines. Business is conducted only in jurisdictions where they are duly licensed or exempt from registration.